84 FR 20090 - Foreign-Trade Zone (FTZ) 20-Norfolk, Virginia; Notification of Proposed Production Activity; STIHL, Incorporated (Outdoor Power Equipment); Virginia Beach, Virginia

[Federal Register Volume 84, Number 89 (Wednesday, May 8, 2019)]
[Notices]
[Pages 20090-20091]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2019-09449]


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DEPARTMENT OF COMMERCE

Foreign-Trade Zones Board

[B-30-2019]


Foreign-Trade Zone (FTZ) 20--Norfolk, Virginia; Notification of 
Proposed Production Activity; STIHL, Incorporated (Outdoor Power 
Equipment); Virginia Beach, Virginia

    STIHL, Incorporated (STIHL) submitted a notification of proposed 
production activity to the FTZ Board for its facility in Virginia 
Beach, Virginia. The notification conforming to the requirements of the 
regulations of the FTZ Board (15 CFR 400.22) was received on May 1, 
2019.
    STIHL already has authority to produce outdoor power equipment and 
their parts within Subzone 20E. The current request would add foreign 
status materials/components to the scope of authority. Pursuant to 15 
CFR 400.14(b), additional FTZ authority would be limited to the 
specific foreign-status materials/components described in the submitted 
notification (as described below) and subsequently authorized by the 
FTZ Board.
    Production under FTZ procedures could exempt STIHL from customs 
duty payments on the foreign-status materials/components used in export 
production. On its domestic sales, for the foreign-status materials/
components noted below, STIHL would be able to choose the duty rates 
during customs entry procedures that apply to: Blowers, trimmers, 
sprayers, cutters, cultivators, and chainsaws (duty rate ranges from 
duty-free to 4.7%). STIHL would be able to avoid duty on foreign-status 
components which become scrap/waste. Customs duties also could possibly 
be deferred or reduced on foreign-status production equipment.
    The materials/components sourced from abroad include portable 
sprayers, tool holders, lithium battery primary cells, recorded media, 
electronic modules, and apparatus for measuring voltage (duty rate 
ranges from duty-free to 3.9%). The request indicates that lithium 
battery primary cells will be admitted to the zone in privileged 
foreign status (19 CFR 146.41), thereby precluding inverted tariff 
benefits on such items. The request also indicates that certain 
materials/components are subject to special duties under Section 301 of 
the Trade Act of 1974 (Section

[[Page 20091]]

301), depending on the country of origin. The applicable Section 301 
decisions require subject merchandise to be admitted to FTZs in 
privileged foreign status.
    Public comment is invited from interested parties. Submissions 
shall be addressed to the Board's Executive Secretary and sent to: 
[email protected]. The closing period for their receipt is June 17, 2019.
    A copy of the notification will be available for public inspection 
in the ``Reading Room'' section of the Board's website, which is 
accessible via www.trade.gov/ftz.
    For further information, contact Juanita Chen at 
[email protected] or 202-482-1378.

    Dated: May 2, 2019.
Andrew McGilvray,
Executive Secretary.
[FR Doc. 2019-09449 Filed 5-7-19; 8:45 am]
BILLING CODE 3510-DS-P